On-chain funds have indeed been brewing changes over the past two years. BUIDL broke the $1 billion mark in March 2025, sparking numerous discussions, as it was the first on-chain fund to reach this scale. By the end of the year, its size skyrocketed to over $20 billion, making it the largest tokenized fund to date.

What does this indicate? The key factors that institutions value are efficiency and cost.

Think about how traditional money market funds operate—subscriptions and redemptions require T+1 or T+2 processing, cross-border transfers rely on SWIFT, with fees stacking up and efficiency being painfully low. How does this compare to on-chain transactions? Transfers are instant, with fees under $1, and trading can happen 365 days a year. The difference is obvious.

Another often-overlooked aspect is the opening of distribution channels. In the past, retail investors wanting to access money market funds faced high barriers, usually requiring a minimum of $1 million. Now, through blockchain, these barriers are shattered, and anyone can participate.

Ondo Finance is a protocol that has sensed this opportunity. It slices institutional-grade RWA products like BUIDL into smaller shares and repackages them for DeFi users. The OUSG product, for example, is a direct investment in BUIDL, allowing ordinary users to earn the same 4-5% annual yield as U.S. Treasuries.

How crazy is the growth rate of tokenized U.S. Treasuries? It was less than $200 million at the beginning of 2024, but by the end of 2025, it had skyrocketed to over $7.3 billion. This explosive growth, along with institutional entry, has indeed provided a certain level of regulatory support to the entire RWA track.